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March 20, 2017

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Industry Icon Sells Auction Broadcasting Co.

Photo by Jeffrey Bellant MAN OF HONOR: Mike Hockett (center), founder of ABC, receives an award during the Conference of Automotive Remarketing in Las Vegas earlier this month. He is pictured with (from left), Frank Hackett, NAAA CEO; Jerry Hinton, NAAA president; Jeannie Chiaromonte, IARA president and Tony Long, executive director of the IARA. By Jeffrey Bellant

Rush - Dated Material

Auction veteran Mike Hockett Sr. was honored for his more than a half-century of service to the auto auction industry just as the sale of Auction Broadcasting Co. was finalized. America’s Auto Auction acquired ABC, creating one of the largest privately held wholesale auto auction chains in the U.S., with 19 locations. “This acquisition further establishes us as a leading automobile auction company in the country,” said Ben Lange, CEO of America’s Auto Auction. “This consolidation will allow

greater potential for dealers, fleet and lease, and institutional customers, and the culture of both companies is built around providing quality service to our customers and employees.” Hockett founded ABC in 2000. The family-owned company has locations in Baton Rouge, La.; Birmingham, Ala.; Bowling Green, Ky.; Toledo, Ohio; Lancaster, Pa.; St. Louis; and Virginia Beach, Va. Hockett also founded ADESA. Hockett received the Ed Bobit Industry Icon Award during the recent Conference of Automotive Remarketers convention. The award salutes members of the

automotive business community who most exemplify leadership, dedication, service, and devotion to the ideal of excellence. Numerous industry veterans were honored with awards during the event. Tim Meta, national remarketing manager for Fifth Third Bancorp, was named Consignor of the Year. The winner of the award is selected by peers through online voting. Criteria to be nominated includes: someone who has implemented and encouraged the use of best practices; someone who has created, embraced and implemented industry innovation; someone who

has moved the industry forward through professionalism and high standards; and someone who has willingly participated in industry associations/groups and served as a mentor and role model to the next generation of remarketers. Meta said he was humbled when he learned he was receiving the award. “There are so many great consignors who I learned so much from over the years,” he said. “I appreciate it very much. I’ve really admired a lot of you out there and I wouldn’t be up here if it weren’t for you.” Continued on page 10

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USED CAR NEWS

March 20, 2017 • 3

Regulators Raise Issues About Automotive Buying Several regulators took aim at automotive inance and retailing during National Consumer Protection Week in the irst full week of March. The biggest display came from the New York City Department of Consumer Afairs, which unveiled the Used Car Buyers’ Bill of Rights. The bill is really a collection of existing rules governing the sale of used cars in the city, such as price and contract disclosures. DCA Commissioner Lorelei Salas said she introduced the bill “in response to the growing national subprime auto lending crisis.” Salas made the announcement at a press conference with federal, state, and city consumer protection agencies, including the U.S. Postal Inspection Service, the Better Business Bureau serving Metropolitan New York, and the Federal Trade Commission. Virginia Attorney General Mark R. Herring encouraged residents of his state to

familiarize themselves with the risks associated with small-dollar loans including auto title, and to understand their rights when taking out one of these potentially risky loans. “The laws to protect Virginians against this kind of predatory and abusive lending are not nearly as strong as they need to be,” Herring said. “That’s why it’s so important for Virginians to understand the risks associated with these products, to carefully review any terms and understand your own ability to repay the loan, and to consider any alternatives that may be available.” Herring recently reorganized the Consumer Protection Section of his oice to include the irst dedicated Predatory Lending Unit to investigate and prosecute suspected violations of state and federal consumer lending statutes, including laws concerning title loans. The unit also focuses on consumer education so Virginians are aware of the potential

FIGHTING WORDS: New York City Department of Consumer Affairs Commissioner Lorelai Salas presents what she calls the Used Car Buyers’ Bill of Rights during a press conference.

risks of these loans, as well as alternatives. Arkansas Attorney General Leslie Rutledge used National Consumer Protection Week to unveil an updated guide to the Arkansas Lemon Law. The good news for dealers is the purchase cost of the guide will be reduced by 20 percent.

To comply with the Arkansas Lemon Law, dealers may purchase boxes, which include 400 booklets, for $100 each. Costs cover printing, taxes and shipping. Dealerships can complete the order form online to request copies of the new guidebook, which includes sample letters to manufacturers and contact informa-

tion for manufacturers. “The Arkansas Lemon Law provides a safety net for Arkansans who have purchased a vehicle that is having recurring problems,” Rutledge said. “My goal is for Arkansans to better understand their protections and rights under the law in this easy-to-read, more-condensed guidebook.”

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4 • March 20, 2017

USED CAR NEWS

NEWS BRIEFS Copart Expands Facilities

Auction Offers Digital Badges

Copart Inc. announced the opening of its ifth location in Illinois. The southern Illinois auction will create more capacity for the St. Louis market. Copart also announced the addition of its Okeechobee, Fla. location. This facility is located between Orlando, Tampa and Miami, and it will serve as a standby location speciically for catastrophic events. This standby location in Okeechobee follows Copart opening its 13th Florida full-service facility in January.

Dealers Auto Auction of the Southwest has announced the release of its digital bidder badges. The digital badges are available from the Apple and Google stores. They recognize a bidder upon entrance into the auction and automatically assign a badge. The concept was developed at DAASW and made possible by Peter Levy and his IAS company. The badge includes a QR code that can be scanned with invoices sent by text or email.

Westlake Offers Pre-Qualiication

Dent Wizard Techs Win Contest

Westlake Financial Services announced the launch of an online indirect auto loan pre-qualiication platform for new and returning customers. Westlake only ofers online prequaliication in the state of California, but plans to expand to other states throughout 2017. Customers outside of California are not yet able to obtain a pre-qualiication or view inventory, but can still go through the inancing process online and will be directed to nearby dealers participating in Westlake’s network of over 50,000 dealerships.

Technicians from Dent Wizard International earned irst and second place honors in the annual PDR (Paintless Dent Removal) Dent Olympics competition at the 2017 International Mobile Tech Expo, held Jan. 19-21 in Orlando. Taking home irst place in the 2017 PDR Dent Olympics was Billy Martin, who works in Dent Wizard’s Northeast Region. Second place went to Kyle Violette from the Midwest Region, and Jody Stewart from the Southeast Region earned twelfth place. Only the top 13 inishers in the competition earn awards. Approximately 60 PDR techs SAVANNAH, GA

Have You Heard The News?

participated in this year’s PDR Dent Olympics, including techs from Italy, Germany, Japan, Russia, Brazil and across the U.S. Competitors in the PDR Olympics are given 45 minutes to ix one very challenging dent in a car door panel. Competitors’ work is judged on repair quality and speed. Martin, the irst-place inisher, earned a trophy plus $3,000 in tools and gift cards for his accomplishment. Second-place inisher Violette earned a trophy plus $1,000 in tools and gift cards. Martin, Violette and Stewart also earned tool credit rewards from Dent Wizard.

and adjusted for seasonality, vehicle age, mileage, condition, segment mix and inlation. Aggregated from daily vehicle value updates, and captured throughout hundreds of wholesale physical and online auto auctions across the country, the Black Book Used Vehicle Retention Index represents data across all regions of the U.S. The index is based on a list of vehicles included in the Black Book wholesale database, and includes no bias toward any brand, auction or region, ensuring a more accurate reporting of the used vehicle market.

XLerate Adds Auction Black Book Introduces Used Vehicle Retention Index Black Book has unveiled the Black Book Used Vehicle Retention Index. The index is designed to ofer an unbiased, accurate view of the strength of used wholesale market values. The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on two- to six-yearold used vehicles, as a percent of the original typically equipped MSRP. The index is weighted based on used vehicle registration volume

The XLerate Group announced the addition of a new member to its auction group with the acquisition of Corry Auto Dealers Exchange (CADE). CADE is the XLerate Group’s irst Pennsylvania auction.

PAGE 17

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer

Southeastern Auto Auction is Now Offering Vehicles from:

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

Columnist: Tony Moorby Circulation: Helen Thomas Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer

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Used Car News is published the irst and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved.

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USED CAR NEWS

March 20, 2017 • 5

Wholesale Prices Hit Plateau Wholes a l e prices declined slightly in February, but i n d u st r y observers say the market remains f a i r l y Tom Webb healthy. Wholesale used vehicle prices, as measured by Manheim, fell by 0.2 percent in February. However, due to a sharp decline in pricing in February 2016, the Manheim Index now shows a yearover-year gain of 1.1 percent. The Manheim Used Vehicle Value Index stood at 124.6 for February. Manheim adjusts wholesale prices for mix, mileage and seasonality. Wholesale prices rose in only one month out of the last seven, Manheim reports. Still, Manheim chief economist Tom Webb sees February as a good performance for the market. “In the face of heavy new vehicle inventory and incentives, the stability of used vehicle values is a credit to the retail market that continues

to provide dealers the ability to quickly retail wholesale acquisitions at reasonable grosses,” Webb said. Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics, agrees that the relatively slight decline is a good sign. “Vehicle retention values have held relatively strong for the second month in a row this year, except for some luxury segments,” Goyal said. “Consumer confidence scored above the expected rate for February, and this coupled with the tax rebate season could be having a positive influence on the retention of vehicle values since there are more sales of smaller vehicles taking place.” Black Book reports that the average price of a used vehicle for model years 2011-2015 depreciated by 0.8 percent in February. Cars overall saw depreciation of 0.8 percent and trucks saw depreciation of 0.7 percent, Black Book reported. All vehicles are averaging a 12-month depreciation change of 17.9 percent, according to Black Book. In February, small pickups performed the best.

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6 • March 20, 2017

USED CAR NEWS

New Vehicle Sales Fall

70 Years Can’t Be Wrong!

DETROIT (AP) – U.S. buyers snapped up pickups and SUVs in February, lured by Presidents Day sales, brightening what is usually a lackluster month for the auto industry. Overall sales of new vehicles fell 1 percent from last February to 1.3 million, according to Autodata Corp. But automakers made up the diference with strong sales of more proitable SUV and trucks. Sales of the Chevrolet Silverado pickup jumped 17 percent to more than 50,500 trucks. Ford sold nearly 69,000 SUVs — a February record. Nissan said sales of its Rogue SUV were up 54 percent. General Motors and Nissan both saw 4 percent sales gains over last February. Volkswagen’s sales were up 13 percent and Honda’s sales were up 2 percent. But those gains were ofset by declines at other automakers. Good deals reeled in buyers. Incentives per vehicle rose an estimated 13.5 percent to $3,443 last month, according to automotive forecasting irm ALG. GM was the biggest spender, at $4,547 per vehicle. Subaru spent the least, at $896 per vehicle, but Subaru’s spending was up 61 percent over last February. There were several reasons for

the lurry of deals. After a sevenyear stretch of sales increases — and record U.S. sales in 2016 — demand is starting to slow. Automakers want to hold on to their share of that market and avoid expensive cutbacks in auto production. “It is taking more efort and more money to move the metal this year than last,” said Michelle Krebs, a senior analyst with Autotrader. Automakers are also spending more because vehicles cost more. Consumers are rapidly shifting out of cars and into SUVs and trucks, which cost more money. Kelley Blue Book said the price paid for a vehicle last month was up 2 percent from last February to an average of $34,352. Ford’s U.S. sales chief Mark LaNeve said cars made up 53 percent of new vehicle sales in 2010. In February, they were around 35 percent. “It is structural and in some ways breathtaking,” LaNeve said. “There’s going to be a car market, but where it eventually gets to, we don’t know.” The deals will likely continue in the coming months, says Alec Gutierrez, a senior market analyst with Kelley Blue Book. The industry has an 80-day supply of vehicles to sell, which is about 20 days more than the level considered ideal.

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8 • March 20, 2017

USED CAR NEWS

HABITS OF SUCCESSUL DEALERS SUCCESSFUL DEALERS AVOID PROBLEMS, PLAN FOR SUCCESS By Ted Craig

There are plenty of ways to succeed in the used-car business. But a close look at some of the best operators shows they share several habits. One of these is coming up with a plan. “All successful dealers have a business plan for the year,” said Joe Lescota, with the National Independent Automobile Dealers Association. This plan must be realistic, which means including a projection of net proit along with gross and revenue. Successful dealers review that plan on a weekly basis. Dealers must know how each employee its in this plan. That means having a job

description for everybody and training them on how to do those jobs. One of the most important habits is consistency, said Anthony Underwood, the owner of Underwood Motors in Bessemer, Ala. Underwood said people often want to change the script just to maintain their own interest, regardless of how well a business operates. “Success is boring,” he said. Dealers need to remember to do what is best for all rather than themselves. Consistency is diferent than not changing. In fact, another habit of successful dealers is accepting change, especially when it comes to technology. Ken Shilson, founder of the National Alliance of Buy-

Here, Pay-Here Dealers, said it was enough a few years ago for a dealer to have a website and maybe use AutoTrader to attract customers. It was a question of putting himself out there and having the customers come to him. “What works today is proactively connecting with the customer before they go somewhere else,” Shilson said. “You have to take their hand and being them to your lot.” Successful dealers embrace other technologies to solve their problems. For example, the kind of inventory typical of buy-here, pay-here lots proves hard to ind these days. Successful dealers use technology to broaden their search for the right units with which to stock their lots.

They also use tools such as GPS devices to control their costs and make their operations more eicient. Another habit that helps dealers on several fronts is making their customers happy. “Do whatever you can to keep the customer happy and that goes a long way,” said William Denius, an attorney who specializes in auto inance. Denius said many disputes

between dealers and their inance companies arise when a customer starts griping and as a result stops paying. “Of course, there will be times when you do all you can and it’s not enough,” Denius said. “But trying is crucial.” So successful dealers are in the habit of keeping their customers happy, keeping up with change, having a plan and being consistent.

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10 • March 20, 2017

USED CAR NEWS

Awards – Continued from page 1 M e t a said the best thing about being a consignor is that it’s not so much about competitiont between consignors. “When Dan Kennedy we sell a car for a high price, it helps all of us,” he said. Sharing ideas, advice and friendships has been a big part of his success, Meta said. Meta is the incoming president of the International Automotive Remarketers Alliance. The 2017 Remarketer of the Year winner also meets the same criteria as the Consignor of the Year, in that the person must use and promote best practices is an innovator and mentor who has moved the industry forward while being involved in industry organizations. CAR Chairman Mike Antich said many companies in the remarketing industry were founded as family businesses. In the past, the conference has always honored individuals. “This year we want to honor a

family,” Antich said. “The 2017 Remarketer of the Year award goes to the Nichols family (of BSC America).” Charles and Michelle Nichols, president and vice president of BSC America, accepted the award on behalf of the company and their father, BSC America Chairman Ray Nichols, who was unable to attend the event. “It’s a wonderful event and we are very humbled,” Charles said. “As you know we are truly in a family business. We really appreciate it. “This industry has done a lot for all of us in this room and we are deeply honored and humbled to be part of it.” The conference also gave its Lifetime Achievement Award/ Industry Excellence to retiring Dan Kennedy of General Motors for his career in remarketing. Kennedy is a member of the NAAA Hall of Fame and sold 15 million vehicles in his career. “I’m very honored to accept this prestigious award,” Kennedy said. “Thirty-one years in the industry I’m very fortunate and very blessed to be part of a wonderful team and an outstanding industry. I’m grateful to all of you.”

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USED CAR NEWS

March 20, 2017 • 11

Auction Pioneer Wins Circle of Excellence Award By Jeffrey Bellant

The International Automotive Remarketers Alliance honored auction pioneer Tony Moorby with the group’s highest honor – the Circle of Excellence award. Dave Alfonso, recently retired from Kia Motors, presented the award. “If the words ‘Tony Moorby’ and ‘excellence’ are not synonymous, then excellence cannot be deined,” Alfonso said. “He’s made things better for everyone in the industry. “Above all, he did it while remaining the gentlemen’s gentleman.” Alfonso said it’s been his “distinct honor and privilege” to have Moorby in his life. “That’s the most lattering introduction I’ve ever had in my life,” Moorby said, as he accepted the award. “It’s hard to know how to react when a gathering of industry peers recognizes that you may have contributed something to an industry that you really love.”

Moorby said he got more out of the industry than he contributed. “The relationships that I’ve formed over the years have become very meaningful friendships, learning opportunities and given me the ability to grow in myself,” Moorby said. “It’s been a remarkable journey. “I really am truly grateful for this acknowledgement. I can’t tell you what it means to me.” Moorby was born in 1948 in Great Britain. He eventually joined a publicly owned franchise car dealership as a management trainee, said Alfonso. Moorby became a general manager at a franchise dealership at age 24. In 1978, he joined British Car Auctions as deputy sales director. He partnered with then-managing director Mike Richardson to establish an auto auction company in the United States, Moorby came to the U.S. in 1982, when Anglo American Auto Auctions was born. It grew to 28 auctions

Photo by Jeffrey Bellant TONY AWARD: Retired auction pioneer Tony Moorby receives the IARA’s Circle of Excellence Award from Dave Alfonso during the CAR conference in Las Vegas.

across the nation and the company was acquired by ADT in 1997 and later by Tyco International with Moorby as its president. Tyco later sold the company to Manheim for $1 billion. The government forced Manheim to sell of some of the auctions to prevent a monopoly in certain markets, Alfonso said.

Some of the auctions were purchased by ADESA and ADESA hired Moorby to serve as executive vice president. He eventually moved into another business with other industry partners. Alfonso said Moorby brought ideas and innovations to the industry. He said Moorby’s company was a key player in the passage of

the Truth in Mileage Act in 1991. He also encouraged the industry to reveal vehicle histories as part of the resale process at every level. “The passing of this legislation was a landmark turning point in the industry,” Alfonso said. Moorby’s company also pioneered reconditioning, training and other innovations in the industry.


12 • March 20, 2017

USED CAR NEWS

State Settles with Car Dealer CHARLESTON, W. Va. (AP) – West Virginia Attorney General Patrick Morrisey has reached a court settlement with a Cabell County used-car dealer. The settlement requires the dealer stand behind warranties, post unaltered buyer’s guides and ensure each vehicle sold will pass state safety inspection. It requires owner Shawn Dunfee to pay a $5,000 civil penalty, $2,500 previous penalty and $1,350 restitution to a customer by April 30. The lawsuit against Dunfee and For Cars, Trucks and Vans

his business, Dunfee’s Used Cars, alleged the dealership sold vehicles with mechanical defects, altered warranties illegally and failed to display car buyer’s guides. According to the attorney general’s oice, Dunfee was irst investigated following complaints in 2010 about defective vehicles and modiied warranties that kept them from getting needed repairs. He agreed to change practices, followed by a 2015 investigation for similar violations and a second agreement.

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USED CAR NEWS

March 20, 2017 • 13

State OKs Driverless Cars LOS ANGELES (AP) – Cars with no steering wheel, no pedals and nobody at all inside could be driving themselves on California roads by the end of the year, under proposed state rules that would give a powerful boost to the fast-developing technology. For the past several years, tech companies and automakers have been testing self-driving cars on the open road in California. But regulators insisted those vehicles have steering wheels, foot controls and human backup drivers who could take over in an emergency. On March 11, the state Department of Motor Vehicles proposed regulations that would open the way for truly driverless cars. Under the rules, road-testing of such vehicles could begin by the end of 2017, and a limited number could become available to customers as early as 2018 – provided the federal government gives the necessary permission. Current federal automobile standards require steering wheels, though the U.S. Transportation Department has encouraged selfdriving technology and could look favorably on such projects. While a few other states have welcomed such testing, this is a major step forward for the industry, given

Show Me the Money!

California’s size as the most populous state, its clout as the nation’s biggest car market and its longtime role as a cultural trendsetter. The proposed regulations also amount to the most detailed regulatory framework of any state. “California has taken a big step. This is exciting,” said Bryant Walker Smith, a law professor at the University of South Carolina who tracks government policy on selfdriving cars. The rules are subject to a comment period and a public hearing and could change. Regulators hope to put them in efect by December. The proposal is more than two years overdue, relecting complex questions of safety and technology. Self-driving systems rely on highly advanced sensors and software. “We don’t want to race to meet a deadline,” said Bernard Soriano, a leader of the motor vehicle agency’s self-driving program. “We want to get this right.” In one important change from prior drafts, once a manufacturer declares its technology is road-ready, it can put its cars on the market. That self-certiication approach mirrors how federal oicials regulate standard cars, and represents a big victory for such players as Google’s self-driving car project.

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14 • March 20, 2017

USED CAR NEWS

Thief Hits Same Store Twice FRANKFORD, Del. - Delaware State Police have arrested a man, Jefrey Cannon, they say broke into a used-car dealership twice in as many weeks and stole thousands of dollars worth of tools. The Used Car Factory in Frankford was burglarized Jan. 23 and Feb. 3. In the irst incident, the front door was smashed to gain entry. Once inside, Cannon is alleged to have removed more than $250 in cash from a register till along with two diagnostic scan tools valued at $5,000

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each. In the second incident the front door was once again smashed open and two separate desks were ransacked, causing damage to a computer. Cannon then removed various tools valued at more $9,000 from the shop and damaged a car hood that was in for repairs before leeing the business. Detectives developed a suspect and oicers got a search warrant for his home. Police say they found items stolen during both burglaries.


USED CAR NEWS

March 20, 2017 • 15

RETAIL MARKETS INDIANA Kelly Crowl, controller/ secretary, All Star Autos Inc., La Porte, Ind.: “We’ve been in business 41 years. We have one location now. We used to have two. “We have about 75 cars on the lot. It sometimes goes up a little. We’re typically between 75 and 100 units. “Mostly we get our vehicles from auctions. We use Manheim and ADESA. “We’re on a little (sales) uptick. We generally sell between 30 and 35 (units) per month. The last few weeks have been going very well. “We are not buy-here, pay-here. We help arrange inancing and we use Credit Acceptance Corp. About 40 percent of our deals are subprime. “Average retail price is around $13,000 to $15,000. “We’ve been keeping some nicer late-model stuf with remaining factory warranties on them. But we carry everything. “Our average unit would

be two to ive years old. “We try to keep those nice lease units, cherry-picked. I would say average mileage is under 50,000. “We’re pretty break-even in carrying cars and trucks. We try to carry as many trucks as we can. Those are a constant seller here. We also try to keep both cars and SUVs on the lot. So I would say we’ve got a really good mix. “Domestics and imports are probably 50/50. “We’ve been working really hard on reconditioning costs. We’ve dropped that from $1,200 to somewhere close to $900. Tony, our buyer, and my dad – with 41 years experience – working together are just buying nicer units. Some of them we’ll get with post-sale inspections. Most of them we’ll buy with high ratings. “In a small town like La Porte, Ind., our reputation is huge. We want the best cars we can get for the best money. “We use Facebook and

other social media. In the last few years we’ve really reduced our expenditures on marketing. We don’t do any newspaper or really any radio. “We do a lot of sponsorships of local teams. We try to keep our marketing local. “We do some reconditioning work in-house and we farm some out. “We maintain a website through Carsforsale.com. Then we have our own independent website. “We recently sold a 2015 Dodge Ram 1500 crew cab, beautiful, loaded up. It had 18,000 miles and sold for $35,900. “I’m optimistic about 2017. I think we’re all feeling optimistic. We’re solid into our second generation. My dad and mom are still involved and the three of us siblings are partners. My brother Tony is doing the buying and my sister Marti is the best salesman in the state of Indiana. We’re keeping our staf lean and doing things right.”

Compiled by Jeffrey Bellant MARYLAND Gus Kurtz, president, Sports and Imports Inc., Pasadena, Md.: “We have one location. We used to have three but I’m getting older and we’ve consolidated. We’ve been in business coming up on 27 years. “I keep about 120 in inventory. We sell about 50 to 55 a month consistently. “We’re straight retail. Locally, for the convenience of our customers, we might do two deals a month of inhouse inancing. “(We get) about 20 percent of our inventory from trades, 10 to 20 percent of the (street) and 70 percent from auctions. “We use Bel Air Auto Auction and Manheim. “We’re really excited about Bel Air’s new location. I’ve been going to that auction for 30 to 34 years. It’s a well-run place. Charles and Michelle Nichols are great people. I’ve known them and their father for 34 years. (The family is a big asset to

the industry.) “Our primary market is trucks and SUVs, which is 70 percent to 75 percent of our market. So our average retail price has increased over the years. It’s hovering between $12,000 and $14,000. “Average mileage is around 75,000 to 80,000. The model year is around 2010 to 2013. (Inventory is) probably 65 percent domestics and 35 percent imports. “Reconditioning costs were up last year about $200. Our average cost is $750 a vehicle. The vehicles that are coming to auction are of lesser quality and I think that’s industry-wide. You have to spend more to bring them up to par. “We do our own reconditioning. But we sub our service work out. “We primarily use Internet-based advertising. But we still do some print and some radio. “I recently sold a 2013 Chevy Volt. It had 65,000 miles. I got $10,995.”


16 • March 20, 2017

USED CAR NEWS

WHOLESALE MARKETS CONNECTICUT Peter Saldamarco, president, Central Auto Auction, Hamden, Conn.: “It was quiet (in the lanes) in January, but (at the end of February), tax checks must have come out because it just boomed. Hopefully, it’s the spring season. “Volumes have been down 20 to 30 percent, but sales percentages have been pretty strong. We’re in the mid60s. But it’s 60 percent of less volume. “We’ve been running 300 and on a good week 370 to 380. But during the slow time, it was down to 270 to 290. “Most definitely I’m expecting volumes to increase. “We draw 200 dealers in the lanes. We have about 30 buys in simulcast. We use AWG for simulcast and we use Auction Pipeline for how we promote the simulcast sale. “We run three lanes and we’re getting ready to open a fourth. The fourth lane is coming before the end of

this year. “We added four acres on last year and we bought a salvage yard next door. All the site work, drainage and fencing is done. The final step is to open the lane. “Part of our expansion is we’re opening up a pretty big service department, which should be open by the end of the year. A vehicle evaluation center should be open within a few months. “We’re probably 60 to 70 percent new-car trades, 30 percent commercial and 10 percent independent dealer consignment. “We have a GSA sale and we have a lot of smaller fleet companies. We just established a partnership with the Credit Union League of Connecticut. We are now endorsed by it to its membership. I think there are 80 members. Hopefully, that will kick up our repo volumes. “Our average price overall is about $4,500. That’s a tick up from this time last year. “Repos are going up for

sure. “We recently got involved with Tom Stewart (of AMS). He’s our national sales rep – along with other auctions – and we hope that relationship will help some of the fleet-lease companies to give us a try. “Our donation car business is up. We run over 100 a week. “We do our GSA sale once a month, Generally, that runs seven to eight months out of the year. New cars just started arriving, which we also marshal for GSA. The used cars should come in by April. “A typical sale is 100 cars and they are all reconditioned and that’s open to the public. “The bulk are passenger vehicles, but we also get light trucks and mid-size trucks. Amtrak is one of GSA’s biggest customers, and Amtrak is our nextdoor neighbor. So a lot of pickup truck and light truck volumes come from them specifically.”

WISCONSIN Jay Sass, general manager, Mid-State Jeferson Auto Auction, Jeferson, Wis.: “We’ve been around about 20 years. “Right now, we’re running four lanes. We had been running three as of two years ago and then we added a fourth. Now we’re thinking of remodeling because we’re getting jampacked. “Consignment had been down a little bit, but now we’re in tax season. January was down a little bit, just because I think the new-car business had been down a little bit. “But just (March 7) we ran nearly 500 cars, which is a big sale for us. “We are one of the auctions that have one of the highest sales percentages. For example, (at our March 7 sale) we ran just shy of 75 percent. The week prior to that, we ran about 83 to 84 percent. “As a whole we run nor-

Compiled by Jeffrey Bellant mally around 68 to 70 percent as our average sell rate. “Our recent sale had 280 bidders and maybe 20 to 30 people online. That’s up a little bit because of tax season. “Our average is about 206 for bidders. “New-car dealer sales are starting to pick up a little bit. “As far as used cars, people have been really having good used-car sales the last couple of months. I think that might be why used-car consignment fell a little bit earlier. “About 90 percent of our volumes are dealer consignment. The rest are bank repos and we have a little bit of fleet. “We will probably have more repos this year. “Our normal average (price on the block) is around $3,800. “My feeling is, just by the way things look, we’re going to have a 10 to 20 percent increase (in business) for 2017.”


17 • March 20, 2017

USED CAR NEWS

DISCONNECTED JOTTINGS FROM So just when you inished reading the 20,000 pages relating to Obamacare, or the Afordable Health Care Act, you’re going to have to start over.

TONY MOORBY

healthcare, complicated by its very nature, has clouded every issue related to its implementation and how to fairly share its costs. Some people think the Eu-

Tony Moorby • 50-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

Actually the real count is 906 pages of the law itself, but still, all that legal gobbledygook never made easy digestion for the man in the street or on a gurney, for that matter. No one ever explained it to anyone in words of one syllable and I charge anyone to choose a person in the street for an explanation or interpretation. Not a cellulose cat in hell’s chance. The whole miasma of

ropean system is best – it’s free. Pile and hogwash! One may not be charged at the point of service and prescriptions incur a co-pay, at least in England, but it’s all pre-paid from taxes – high taxes. The costs of social services, including health care in Sweden are paid out of a deduction of nearly 60 percent of your paycheck. In fact, in 1996 it reached a peak of 61 percent. They rank as one

of the happiest or the least depressed people on the planet. They should be when the “what me care� attitude is bought and paid for. Run a presidential campaign on those, admittedly socialist, ethics and see how far you get. Actually pre-payment for health care and education are probably things of the past. It was the way of things in my parents’ day – their schooling, including university, and health care was pre-paid by their parents. Now it’s pay-as-you-go – expensively – and borrow from the future to pay for it. As a sitting president doesn’t have to be seen to pay for it, the industry throws money around like a drunken lottery winner and the patient has to foot the bill. I’ve quoted examples of idiotically high costs before and they continue today. I recently got billed $4,600 for two CAT scans from Vanderbilt Hospital – seriously! I appreciate that GE charges a fortune for a CAT scanner

C R O S S WO R D 38. Expression of surprise 39. Computer department 40. Car with a dragon in its logo, 2 words 43. Popular European model, based in the Czech Republic 46. One in German 47. General Motors division, now discontinued 48. Enable to survive Down 1. Clubman and Countryman 2. Keeps running 3. Sounding like a Lamborghini revving up 4. Bismarck’s state 5. Wheels’ need

are spread so widely in hospitals. Even as a Republican, I’ve always maintained that a successful society should be able to take care of its people so perhaps an evenly applied health care tax is the fairest way to go. The government could then tell the drug companies how much they’d pay for drugs. I recently had to pay $320 for a month’s supply for a prescription. I then went to GoodRX on the Internet and got the same thing (not a generic equivalent) for $12. Having never igured out the last mish-mash of a health care policy, we’re now adding taxes and tax relief to this one. So another ream of pages will be added to the 70,000 plus that already make up the tax code and its regulations. You’ll need prescription glasses at the end of that lot.

To see past columns from Tony Moorby, visit www.usedcarnews.com/columnists/tony-moorby Digital version available at usedcarnews.com

By Myles Mellor

Across 1. 570GT brand 5. Nissan auto 9. Corporate abbreviation 10. GTR or X-Trail brand 11. Tire maker 13. System, for short 15. Q30 or QX30 18. ___ Mans race 19. Dodge muscle car 21. Shady tree 23. Piece of advice 24. Operated mechanically 26. Wide shoe itting 27. Computer’s info 28. See 20 down 29. ___compact car 31. In place of 32. Word before Rover 34. Galant manufacturers

– up to $400,000, I believe. My math tells me that 179 patients will have it paid for. On the day of my treatment they were all in line in front of me! I don’t begrudge anyone a proit but they don’t even keep the place clean – it’s a hospital for Pete’s sake! You want to get a staph infection? Spend time in one of today’s hospitals – it won’t be long – I did. When I was growing up, hospitals smelled of pine disinfectant, applied by nurses every afternoon. The last time I was in Vanderbilt as a patient, a cleaner came around once in ive days and swabbed the loors, including the bathroom with some brown eluent that smelled of last week. Then she proceeded to the next room to do the same thing with the same foul luid. No wonder infections



6. Lojack helps you recover ater this 7. Used auto concern 8. Start of Isuzu, 2 words 12. ___ Grand Cherokee 14. Cry of disgust 16. Scuderia ____ 17. Provided that 18. Stead 19. XT5 and CT6 20. James Bond car, goes with 28 across 22. Some airport shuttles 23. New drivers take them 25. Accounts receivable, for short 28. Soccer ___ 30. Lewis Hamilton’s region, generally 33. “CSI� topic, oten















 



 







 





 

















 











 



 







 

35. Foot digit 36. Expos 37. Concealed 41. Honda model 42. Have title to 44. Do-it-yourselfer’s purchase 45. __ ___ roll (doing well)

Solution to this puzzle in the 4/3/17 issue. Call 1.800.794.0760 for a FREE subscription.



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18 • March 20, 2017

USED CAR NEWS

AROUND THE BLOCK

Compiled by Jeffrey Bellant

AUCTION GROUP CEO RECEIVES HONOR Canadian Seller

Sets Truck Record

NICE FELLOW: NAAA President Jerry Hinton (right), presents Cam Hitchock (left), CEO of XLerate Group, with a Warren Young Fellow award during the CAR conference in Las Vegas.

Cam Hitchcock, CEO of XLerate Group, received the Warren Young Fellow honor from National Auto Auction Association President Jerry Hinton during the Conference of Automotive Remarketing in Las Vegas this month. Hinton said the award was for Hitchcock’s role in expanding the

SPECIAL

NAAA’s Safe T. Sam program to all of the employees of the XLerate family. “The program, based on proven best practices, was designed to promote greater safety awareness in acts of prevention through short educational videos,” Hinton said.

“Today, we recognize Cam Hitchcock, not only for his leadership and training of his organization, but for his desire to share this recognition with everyone from XLerate.” Hitchcock led the training of nearly 1,000 full- and part-time employees in the auction group. “We want to thank ADESA and NAAA for making Safe T. Sam available and so easy to use,” Hitchcock said. “There’s nothing more fundamental than safety.” He said one of the main goals is to complete sales and get everyone home safely. Hitchcock encouraged other auctions to implement the program. The Warren Young Scholastic Foundation since 2001 has helped more than 150 students pursue higher education through annual scholarships.

On Feb. 23, Manheim Detroit featured a massive truck sale with The Canadian Super Sellers, one of Canada’s largest truck exporters, selling more than 500 trucks during the event. CSS ran 1,073 four-wheel-drive pickups, sold 556 in the lanes with the remaining units made available on OVE and in a future sale, according to a Manheim spokeswoman, The sale was the largest-ever truck-only sale held at a Manheim location. “Six of our lanes (ran) models from every manufacturer ranging from $5,000 to $60,000-plus wholesale,” said Mandy Savage, Manheim Detroit general manager. “The Canadian Super Sellers is a valuable partner, ofering thousands of vehicles at our location over the past several years.” In 2016, CSS sold 16,300 vehicles at Manheim Detroit.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant. Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

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*Offer valid March 1-31, 2017. Only vehicles offered in the DealerBlock Prime sale on ADESA.com are eligible; vehicles offered in closed sales and private-label sales are not included. Vehicles consigned by Certiied Auction Partners and Repo Service Providers are not eligible. Discount amount cannot exceed $500 and will be displayed on transaction screen when bid is placed. Type 1 transport only; CarsArrive Network must be selected as transportation provider at time of purchase to qualify for discounted transportation rates. No post-purchase adjustments will be possible. Some loorplan providers do not provide inancing for CarsArrive transport. Contact Customer Connection at (888) 526-7326 to conirm your loorplan provider’s eligibility. ADESA reserves the right to modify or cancel this promotional offer at any time.

Used Car News 3/20/17  
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